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Post an EU jobWith automobile manufacturers expected to miss their 2012 voluntary target to reduce CO2 emissions, the Commission is divided on whether to introduce new binding legislation.
Latest data from the Commission shows that European automobile manufacturers will almost certainly fall short on their voluntary commitments to cut cars' carbon dioxide emissions.
Back in 1998, the European Automobile Manufacturers Association (ACEA) promised the Commission to reach average emissions of 140 grammes of CO2 per kilometre for new cars by 2008. Japanese and Korean makers, represented by JAMA and KAMA, agreed on the same target by 2009.
The final EU target, agreed by heads of state and government, is to reach an average CO2 emission figure of 120g/km for all new passenger cars by 2012.
But, average car emissions still stood at 162 grammes of CO2 per kilometre in 2005 and progress is not expected to be anywhere near fast enough to reach the 2012 target.
The Commission is expected to announce, on 24 January 2007, possible new measures to speed up progress.
Commission divided over best approach
Environment and Industry Commissioners have been locked in fierce discussions over whether the main responsibility to reduce CO2 should lie with carmakers – as is the case with the current voluntary commitments – or whether it should be shared out among all stakeholders.
Binding CO2 emission caps for carmakers?
Environment Commissioner Stavros Dimas wants to enshrine a 120g/km limit on average CO2 emissions from new cars from 2012 in binding EU legislation.
But, Enterprise and Industry Commissioner Günter Verheugen says that such a measure would unfairly penalise manufacturers of large and high-performance vehicles.
Indeed, the chances of premium car and SUV manufacturers, such as Jaguar, Land Rover and Porsche meeting a 120 g/km limit within the next five years are virtually non-existent with present technologies.
According to the green NGO Transport & Environment (T&E), just four European manufacturers (Fiat, Citroen, Renault and Peugeot) are currently on track to meet the 2008 target of 140 g/km.
An integrated approach?
The automotive industry argues that more can be achieved on reducing CO2 from road transport by applying a shared approach that would involve tyre-makers, fuel suppliers, repairers, drivers and public authorities as well as vehicle manufacturers.
Rather than focusing on improvements in car technology alone, it wants the Commission to take measures to promote the use of alternative fuels, introduce CO2-based taxation of vehicles and fuels, create programmes to change consumers’ driving habits and introduce traffic-control systems to avoid congestion.
A compromise solution?
The Commission could decide to set a legally binding target of 125-130 grammes per kilometre by 2012. The remaining cuts would be achieved by supplementary measures, such as tougher controls on air-conditioning systems, stricter tyre regulations and programmes for promoting more carbon-efficient driving techniques.
Inclusion of cars in the EU’s Emissions Trading Scheme?
In recent statements, Industry Commissioner Verheugen has voiced the opinion that the extension of the EU’s carbon trading scheme to the automotive sector could provide a solution. The scheme allows industry to buy and sell allowances to emit CO2. Proposals to extend the system to aviation are also currently being examined by Council and Parliament.
Environment Commissioner Stavros Dimas said that a legally binding cap is needed to reach the 2012 target and blamed the automotive industry for the lack of progress: "The technology is there to do this, but it has not been done as promised by the voluntary agreement."
A spokesman for Enterprise and Industry Commissioner Günter Verheugen said: "Mr Verheugen is proposing an integrated approach to see what we can do in technical terms with engines...tyre pressure, which does affect CO2 emissions, how we can possibly change infrastructure to ensure better traffic flows and how we can change driver behaviour," Ton van Lierop said.
Commissioner Verheugen rejected calls for strict limits on CO2 emissions in favour of a system whereby emission credits can be bought and sold, such as the EU's emissions trading scheme. This, he said, would be cheaper for some car manufacturers than developing new technologies by 2012. He explained: "For a manufacturer like Porsche, this would always be cheaper than to demand that its cars are developed to reach the emission level of 120 grammes," said Verheugen.
The Association of European Automobile Manufacturers (ACEA) said: "The problem of reducing greenhouse gas emissions beyond the existing CO2 commitment is complex and can’t be solved by targeting the car manufacturers alone. Other interests, like employment and economic growth, are also at stake."
It insists on an integrated approach, combining technological innovation with other measures aimed at adjusting infrastructure, increasing availability of alternative fuels and changing driver behaviour. "A continued focus on vehicle technology alone would force a radical downsizing of the available range of vehicles, cause a severe loss of competitiveness, in particular on export markets, and lead to a drastic restructuring of the entire industry," it stated.
A spokesperson for the Society of Motor Manufacturers (SMMT) has warned that the plans to set a binding 120g/km limit constituted a threat to jobs in the car industry, particularly for specialist manufacturers. He said that technology required to meet this target could add as much as €2,500 to the price of certain cars, warning that European manufacturers would lose sales to imports.
But environmentalists say that industry's calls for an "integrated approach" is simply an attempt to shirk off its responsibilities. Transport & Environment (T&E) Director Jos Dings said: "If you can find anyone who can tell me how this would work I’d be very happy to meet them," adding: "It’s important that any future legislative proposal holds individual carmakers to account, gives incentives to cut emissions and punishes those that fail."